LA Forge Inc. issued $500,000, 6% bonds on August 1, 2022. Interest is payable semi-annually on February 1 and August 1. The bonds mature on August 1, 2025. At the time of issuance, similar bonds were trading at 8%. LA Forge has a year-end of December 31.

Required:

Create a bond amortization schedule for the term of the bond. 

Prepare the required journal entries for 2022 and 2023. 

Answer rating: 100% (QA)

To create a bond amortization schedule we need to calculate the semiannual interest payments and the ... View the full answer